Assemblymember Steck: One House Budget Sets the Stage for Negotiations Amid D.C. Uncertainty

“A common misconception people have about the New York State Budget is that it is similar to the process of the Federal Budget. In the Federal System, Congress drafts the budget, and the President can either sign it or veto it. In New York State, we have executive budgeting, where the Governor gets to create the budget, and the legislature can modify it or threaten not to pass a budget altogether. The Assembly One House Budget allows all 150 members to establish a negotiating position for discussions between the Speaker, the Governor, and the Senate Majority Leader.

Last year, we provided $1.2 million in the budget for 12 not-for-profit programs that treat co-occurring substance abuse and mental health disorders. I am extremely pleased that the Assembly One House has doubled this funding to $2.4 million. I have personally heard from patients who have received treatment for co-occurring disorders through this program, and they have shared positive experiences and meaningful progress in their recovery. The funding enabled these organizations to hire personnel who are truly qualified to treat mental health and substance use disorder at the same time. I will continue to push for these services to be included in the twelve state-run Addiction Treatment Centers (ATCs), but I am happy that the Governor proposed dedicating $500,000 to study my idea. I am hopeful that my proposal will be included in future budgets.

In the Executive Budget, the Governor only included a 2.1% Targeted Inflationary Increase for employees who provide human services, including OASAS. I am proud that Chair Paulin of the Health Committee, Chair Simon of the Mental Health Committee, and I were able to increase this amount to 7.8%. It is essential that the human services providers are well paid and have a competitive workforce since there is a chronic shortage of these professionals. My colleagues and I will continue to advocate for these workers in the upcoming budget negotiations with the Governor.

Outside of mental health and substance abuse priorities, there are proposals that I strongly support. I applaud the Assembly for adopting the Governor’s proposal to provide universal breakfast and lunch to all students enrolled in publicly funded schools in New York State. This is a New Deal-type program where a vast majority of taxpayers benefit from a government program, not just those who are at or below the poverty line.

In 2022, I introduced legislation – passed unanimously by both the Assembly and Senate – to eliminate the $20 electronic death registry fee that funeral directors must pay to obtain a burial and removal permit. Unfortunately, the Governor vetoed this bill because it had budgetary implications. I was extremely pleased to see this legislation included in the Governor's Executive Budget, and I am proud that the Assembly has recognized the need to eliminate this fee in the One House Proposal.

While the Assembly One House includes many proposals I strongly support, it also retains provisions from the Governor's Budget that I strongly oppose, along with modifications I do not agree with.

When the Governor unveiled her Executive Budget, she announced she wanted all school districts to implement a policy that would ban the use of cell phones in class. I am disappointed that the Assembly has rejected this proposal. Whenever I meet with teachers, they tell me that their students are on their phones and not paying attention in class. A few weeks ago, I met with a group of teachers from a school that has implemented a no-cellphone policy in classrooms. They shared how this change has led to improved attention spans and stronger social skills among students. I firmly believe that all classrooms in New York State should adopt a similar policy, and I will continue advocating for teachers' concerns with my colleagues.

I also cannot support the Assembly adopting the Governor’s proposal to spend $3 billion to send checks to qualifying New Yorkers who make less than $150,000 a $300 check, and joint tax filers who make $300,000 would receive a $500 check. This is an extremely unwise use of taxpayer dollars and will not have a meaningful impact on the middle class. Instead, we should invest $3 billion in a universal childcare program. A universal childcare program would allow all New Yorkers regardless of income to save money on skyrocketing childcare costs, help grow our economy and improve children’s cognitive development.

Additionally, I strongly oppose the continued allocation of taxpayer dollars to the New York State Film Tax Credit. The State Comptroller’s analysis has shown that this program results in a net loss to the state, meaning New York is subsidizing film production without seeing a meaningful return on investment. At a time when we face serious budgetary challenges, it is fiscally irresponsible to continue pouring money into a program that does not provide long-term economic benefits. Instead of subsidizing an industry that already benefits from significant private investment, we should be directing these funds toward programs that truly benefit New Yorkers.

While the Assembly One House Budget is a good first step in the negotiations with the Governor, I am very concerned about the uncertainty New York State faces on the federal level. President Trump and the world’s richest man, Elon Musk, have embarked on a reckless unreasoned crusade to gut the Federal Government and have threatened to withhold funding to states that do not support their agenda. We are facing the prospect of losing a large part of our matching half of Medicaid funding, which is New York's largest expense. If this happens, we will need to rewrite the budget at a later date to redirect existing funding and create a new revenue stream.

The simplest way we can do this is by reinstating the New York Stock Transfer Tax. From 1905 to 1981, New York State established a half a penny tax on stock trades. New York State would generate more than $14 billion annually if reinstated. This is one way New York State could offset any draconian cuts made to punish New York State and enrich the billionaire class. It is extremely efficient, with a rate of one-half penny per dollar and a maximum total of $300 per transaction. At a time when New York must defend itself against harmful federal policies, this measure would provide stability and reaffirm our commitment to a fair economy that works for everyone.”